2015 Final Results | Analyst Briefing
10th March 2016
© Swire Properties Limited 太古地產有限公司
Key Developments
Apr
2015
~ 1.2M sf GFA
Sino-Ocean Taikoo Li Chengdu
 Formally opened
 50:50 JV with Sino-Ocean Land
 88% occupancy, 83% opened
Jul
2015
~ 0.36M sf GFA
The Temple House, Chengdu
 100 hotel rooms and 42
serviced apartments
2
Apr
2015
~ 0.5M sf LFA
May
2015
~ 0.7M sf GFA
Brickell City Centre - Retail
Chai Wan Bus Depot
 61.5% Swire Properties
 25.0% Simon Property Group
 13.5% Bal Harbour Shops
 80:20 JV (Swire : CMB)
 Residential, subject to land
premium agreement with Govt
Aug
2015
~ 63,000 sf GFA
Taikoo Place Apartments
 111 serviced apartments
Sep
2015
~ 64,410 sf GFA
WHITESANDS, Lantau
 28 detached houses
 Started to sell in Sept 2015
Jul
2015
~ 1.3M sf GFA
Qiantan Project, Shanghai
 Framework Agreement
 50:50 JV with Lujiazui Group
 Retail, subject to conditions
precedent
Mar
2016
~ 0.13M sf LFA
Brickell City Centre – Office
 Three Brickell City Centre (one of
the two office towers) opened
 80% leased to Akerman
Financial Summary
Result Highlights
Gross Rental Income
HK$
3.8%
10,716 M
9,676
329
3,961
10,320
353
4,260
Underlying
Profit
Adjusted
Underlying Profit
HK$
7,307 M
2.2%
Adjusted
Underlying Profit
10,716
378
+ 7.1%
4,366
+ 2.5%
7,152
5,707
5,972
2013
2014
2015
HK$
4.1%
216.2 Bn
7,307
216.2
7,078
207.7
202.4
6,348
5,386
Equity Attri. to Shareholders
+ 4.6%
2013
2014
2015
Dec 2013
Dec 2014
Dec 2015
Loss on disposal of U.K. Hotels of HK$229M
4
Gross rental income
3.8% to
HK$10,716M, as rental reversions in
Hong Kong and Mainland China were
generally positive.
Adjusted underlying profit
2.2%
to HK$7,307M, reflecting good
performances from Hong Kong office
portfolio and Mainland China retail
portfolio, and higher trading profits.
Reported profit
47.9% to
HK$14,072M mainly on higher
valuation gains.
Underlying profit
1.0% to
HK$7,078M, after including a loss of
HK$229M on disposal of four hotels
in U.K.
Equity Attri. to Shareholders
HK$
36.97
Per Share
Dec 2014: HK$ 35.50
2015 Dividend per share
0.71
HK$
(2nd / 1st Interim
HK$ 0.48 / HK$ 0.23)
2014 Full Year (2nd/1st Interim):
HK$ 0.66 (HK$ 0.44 / HK$ 0.22)
Financial Summary
HK$M
FY 2014
FY 2015
Change
Revenue
15,387
16,447
6.9%
1,956
7,116
263.8%
Operating profit
10,992
16,207
47.4%
Underlying profit
7,152
7,078
1.0%
Adjusted underlying Profit
7,152
7,307
2.2%
Reported profit
9,516
14,072
47.9%
Underlying earnings per share (HK$ per share)
1.22
1.21
0.8%
Reported earnings per share (HK$ per share)
1.63
2.41
47.9%
0.23
4.5%
0.48
9.1%
Dec 2014
Dec 2015
Change
207,691
216,247
4.1%
Net debt
34,071
33,348
2.1%
Gearing ratio
16.3%
15.3%
1.0%pts
35.50
36.97
4.1%
Valuation gains on investment properties
First interim dividend per share (HK$ per share)
Second interim dividend per share (HK$ per share) (1)
HK$M
NAV attributable to the Company’s shareholders (2)
NAV per share
5
(HK$ per share)
0.66
0.22
0.44
(1) Second interim dividend for 2015 was declared on 10th March 2016 and will be paid on 5th May 2016.
(2) NAV refers to total equity attributable to the Company’s shareholders.
0.71
7.6%
Earnings Reconciliation
Earnings Reconciliation
FY 2014
HK$M
Attributable profit
FY 2015
9,516
14,072
(3,148)
(8,186)
710
1,090
Realised profit on sale of properties
29
28
Dep. of owner-occupied inv. props
16
17
1
41
28
16
7,078
Loss on disposal of U.K. Hotels
7,152
-
Adjusted Underlying Profit
7,152
7,307
Revaluation of investment props
Deferred tax on investment props
Non-controlling interests’ share of
revaluation movements less deferred tax
Movements in the fair value of a put
option liability in favour of a noncontrolling interest
Underlying profit
FY 2014
FY 2015
Change
Property investment
6,074
6,274
+ 3.3%
Property trading
1,049
1,107
+ 5.5%
29
(303)
N/A
7,152
7,078
- 1.0%
Total
6
HK$’M
+ 185
(15)
+ 58
(103)
7,307
7,152
(229)
+ 30
7,078
229
Underlying Profit by Segment
Hotels
Movement in Underlying Profit
Underlying
profit
2014
Increase in Increase in
Net
profit from profit from
changes
HK props
PRC props
from
investment investment other props
investment
Net
Increase in
profit from changes
from
trading
hotels
props
2015 Adjusted Underlying Profit
HK$
7,307 M
2.2%
Adjusted
Underlying
profit
2015
Loss on
disposal
of U.K.
Hotels
Underlying
profit
2015
2015 Underlying Profit
HK$
7,078 M
1.0%
Movement in Investment Properties
Movement in Investment Properties
Fair Value Gains Breakdown
(excl. Hotels & Investment Properties held under JVCs)
HK$’M
+ 7,116
228,449
U.S.A
430
HK$’M
PRC
1,320
+ 4,492
218,720
31st Dec
2014
(641)
HK$
+ 7,116 M
(1,238)
Translation
differences
Capital
expenditure
Other net
transfers /
disposal
Net fair
value gains
31st Dec
2015
2015 Investment Props Valuation
HK$
The modest increase in the valuation of the investment property portfolio is
mainly due to an increase in the valuation of the offices in Hong Kong outside
Central district.
7
Hong Kong
5,366
228,449 M
4.4%
Investment Portfolio
Gross Rental Income
Gross Rental Income
4.3
HK Office
%
 Office occupancy levels were firm.
 Demand for office space improved in 2015.
 Positive rental reversions at Taikoo Place
and Cityplaza.
0.7
HK Retail
%
 Occupancy levels at 100%.
 Retail sales in Hong Kong were adversely
affected by reduced spending by tourists.
3.8%
HK$’M
HK$
10,320
9,015
9,676
6.2%
PRC Props *
10,716M
+ 8.0%
+ 6.2%
+ 7.4%
+ 0.7%
 Sales in our retail portfolios increased.
 Demand for our retail space was firm.
 Retail sales of luxury goods were weak.
+ 4.3%
PRC Props Rental Breakdown
FY 2014
FY 2015
Change
Retail
1,555
1,641
+5.5%
Office
331
360
+8.8%
11
13
+18.2%
1,897
2,014
+6.2%
Serviced Apt
Total
9
* Rental contributions from INDIGO and Sino-Ocean Taikoo Li Chengdu were not reflected in gross rental income as
were accounted for under joint venture companies. On attributable basis, gross rental income from PRC increased
by 14.4% from HK$2,153M in FY 2014 to HK$2,463M in FY 2015.
HK Office Occupancy
Completed HK
Office Properties
GFA (sq ft)
Occupancy
Area Let (sq ft)
Reversion(5)
(100% basis)
(31st Dec 2015)
(New and Renewed
Tenancies)
(incl. Rent
Reviews)
Pacific Place
2,186,433
100%
227,509
-1%
100%
Cityplaza
1,632,930
100%
216,014
+15%
100%
TKP Office Towers (1)
3,136,717
99%
301,198
+10%
50% / 100%
One Island East
1,537,011
99%
243,448
+8%
100%
893,516
100%
125,219
+6%
100%
1,077,161
98%
N/A
Techno Centres (2)
Others (3)
Total (100% basis)
Taikoo Place
N/A 20% / 50% / 100%
10,463,768
Latest rentals
One / Two Pacific Place
Three Pacific Place
Attri.
Interest
HK$ per sq ft
Attributable
Valuation
110 – 125
90 – 100
HK$
Taikoo Place
mid 40s to high 40s
Techno Centres
mid 20s
One Island East
mid 50s to high 60s
126.3 bn
Occupancy
Pacific Place
(1)
(2)
(3)
10
(4)
(5)
Including PCCW Tower (50% owned), managed by Swire Properties.
Excluding Somerset House (the redevelopment of which into a Grade-A office building commenced in
2014) and approximately 187,000 sq ft in Cornwall House owned by the Hong Kong Government.
Others comprise One Citygate (20% owned) , 625 King’s Road (50% owned), Berkshire House (50% owned),
28 Hennessy Road (100% owned) and Generali Tower (100% owned).
Reported gross rental income (excluding rental contributions from JVCs and associates) was HK$5,587M.
Reversion is the percentage change in rent on lease renewals, entry into new leases and rent reviews.
(31st Dec 2015)
~ 99%
Completed
GFA
10.5 M sq ft
Attri’ Gross
Rental (4)
HK$
5,897 M
(2014: HK$5,645M)
HK Retail Occupancy
Completed HK
Retail Properties
GFA (sq ft)
Occupancy
(100% basis)
(31st Dec 2015)
Retail Sales
Growth
Attri.
Interest
(2015)
The Mall, Pacific Place
711,182
100%
-11.8%
100%
1,105,227
100%
+0.7%
100%
Citygate Outlets
462,428
100%
-10.0%
20%
Others (1)
556,818
100%
N/A
20% / 60% / 100%
Cityplaza
Total (100% Basis)
Cityplaza
The Mall, Pacific Place
2,835,655
Citygate
Attributable
Valuation
48.6 bn
2.8 M sq ft
Occupancy
Attri’ Gross
Rental (2)
HK$
Cityplaza – There were some changes in the tenant mix following the 2014
completion of an enhancement project. Retail sales were stable in 2015.
(31st Dec 2015)
100%
Cityplaza
(1)
(2)
11
Others largely comprise Taikoo Shing neighbourhood shops and StarCrest retail premises (which are whollyowned), Island Place retail premises (60% owned) and Tung Chung Crescent neighbourhood shops (20% owned).
Reported gross rental income (excluding rental contributions from JVCs and associates) was HK$2,725M.
Completed
GFA
HK$
2,813 M
(2014: HK$2,798M)
HK Portfolio – Tenant Mix and Lease
Lease Expiry Profile (1)(2)
HK Office
2016
HK Retail
12
(1)
(2)




2017
2018 and onwards
Strong and diverse tenant base.
Well-balanced lease expiry profile.
Top 10 office tenants occupied approx. 22% of office area in HK.
Top 10 retail tenants occupied approx. 26% of retail area in HK.
At 31st Dec 2015.
Based on the percentage of the total rental income attributable to the Group for the month ended 31st Dec 2015.
Property Portfolio – Hong Kong
Exp. Attributable
Completed GFA (1)
(Investment Props)
Expected Attributable GFA of Completed Property Portfolio in Hong Kong (1)(2)
GFA (‘000 sq ft)
15,713
15.7 M sq ft
Taikoo Place
Redevelopment (Ph 2)
14,733
14,733
14,733
CP3 Exchange /
TKP Redevelopment
(Ph II) starts (3)
Taikoo Place
Redevelopment (Ph 1)
13,975
13,522
8-10 Wong Chuk Hang
13,210
Kowloon Bay (NKIL 6312)
Tung Chung (TCTL 11)
Existing Portfolio
2015
13
(1)
(2)
(3)
2016F
2017F
Includes GFA of the hotels.
At 31st Dec 2015.
Redevelopment under planning, subject to further review.
2018F
2019F
2020F
2021F &
onwards
Hong Kong Investment Properties Update
2017
2017
New Kowloon Inland Lot 6312
2018+ Taikoo Place Redevelopment
Tung Chung Town Lot 11
 100% owned site in Kowloon Bay
acquired by tender in Nov 2013.
 Plans for an office building.
 Substructure and superstructure
works in progress.
 20% owned site in Tung Chung
(adjacent to Citygate) acquired
by tender in Mar 2013.
 Plans for a multi-storey
commercial building.
 Excavation and foundation
works in progress
~ 477,700 sf GFA
~ 555,000 sf GFA
2018 8-10 Wong Chuk Hang Road
 Redevelopment of Somerset
House into a 50-storey office
building. Excavation and
foundation works in progress.
 Phase II (redevelopment of
Cornwall House / Warwick House)
is being planned.
 The redevelopment will include
landscaped space of 69,000 sf.
~ 2M sf GFA
2015 Taikoo Place Apartments
 50% owned site in Aberdeen.
 Excavation and foundation
works in progress.
~ 382,500 sf GFA
14
Office
Retail-Led
Serviced Apartments
 a 28-storey building with 111
serviced apartments.
~ 63,000 sf GFA
Property Portfolio – Mainland China
Attributable GFA of Completed Property Portfolio in Mainland China (1)(2)
GFA
(‘000 sq ft)
Exp. Attributable
Completed GFA (1)
(Investment Props)
Attributable Valuation
(Investment Props)
HK$
41.8 Bn
8,150
8,771
8.7 M sq ft
HKRI Taikoo Hui
(Shanghai) (3)
7,036
Sino-Ocean Taikoo Li
Chengdu (4)
INDIGO
(Beijing)
TaiKoo Hui
(Guangzhou)
Taikoo Li Sanlitun
(Beijing)
Others
2015
15
(1)
(2)
(3)
(4)
2016F
Includes GFA of the hotel but excludes GFA of car parks of these projects.
At 31st Dec 2015.
HKRI Taikoo Hui (formerly known as the Dazhongli project) is expected to open in phases from 2016.
Excludes Pinnacle One which is developed for trading purposes.
2017F &
onwards
Property Portfolio – Mainland China
Dalian Port Project
Sino-Ocean Taikoo Li
Chengdu
Taikoo Li Sanlitun
INDIGO
 Framework Agreement
signed.
 JV with CITIC Real Estate
and Dalian Port Real
Estate
 Mixed-use: retail &
apartments
Occupancy
Dalian
88%
Occupancy
Retail Sales
94%
+3%
Retail
Occupancy
92%
97%
Office
Retail
Retail Sales
+30%
Retail
Beijing
TaiKoo Hui
Shanghai
Qiantan Project
HKRI Taikoo Hui
 Framework Agreement
signed.
Chengdu
 50:50 JV with Lujiazui
Group
 Retail development
Guangzhou
Occupancy
100%
99%
Office
Retail
Retail Sales
+16%
2015 Attri. Gross Rental (1)
HK$
2,463
M
14%
( 2014: HK$2,153 M)
16
(1)
(2)
(3)
Reported gross rental income (excluding rental contributions from JVCs and associates) was HK$2,014M.
Retail sales growth quoted in RMB.
Occupancy at 31st Dec 2015
 Interior decoration,
mechanical and electrical
installation works in progress.
 Expected to open in phases
from 2016.
Sino-Ocean Taikoo Li Chengdu / The Temple House
Artist’s Impression
Sino-Ocean Taikoo Li Chengdu
The Temple House, Chengdu
88% occupancy
83% opened
100 hotel rooms
42 serviced apartments
17
*
* At 31st Dec 2015 and including letters of intent.
HKRI Taikoo Hui, Shanghai
Artist’s Impression
 GFA: 3.5M sq ft
A new intriguing
urban
hotel
 1 Retailrooms
Mall, 2 Office Towers,
3 Hotels (incl.
Serv Apts)
opening in Jul 2015
 Open in Phases from 2016
100
42 serviced apartments
Artist Impression
18
Brickell City Centre, Miami
 LFA / SA : 2.2 M sq ft (incl. residential)
 1 Retail Mall, 2 Office Buildings, 1 Hotel (incl. Serv Apts) and
2 Residential Towers
 Open in Phases from 2016
Artist Impression
EAST, Miami
Artist Impression
Office
RISE
Office
Shopping Mall
Artist Impression
Artist Impression
Artist Impression
Artist Impression
One BCC
19
Brickell City Centre, Miami - Investment
Artist Impression
EAST, Miami
Reach
Artist Impression
Office
Rise
Office
Shopping Mall
Artist Impression
Artist Impression
Artist Impression
Artist Impression
 Located in the centre of the Brickell financial district of Miami, with a light rail system
station within the site.
Project Summary (100% Basis)
GFA
2.21 M sq ft (Phase I)
1.97 M sq ft (Phase II)
Components
 Phase II is planned to be a 80-storey mixed-use tower “One Brickell City Centre”
comprising retail, office, hotel and residential space, incorporating the site at 700
Brickell Avenue acquired in Jul 2013.
Retail
2 office buildings
EAST Miami (w SA)
2 Condos (Reach / Rise)
One BCC and 1 Condo
Interest
Retail: 61.5%
Others: 100%
One BCC
Yr of Opening
2016 (Ph I); TBC (Ph II)
 Phase I construction works (BCC) commenced in 2012, with completion expected
during 2016.
 Joint venture with Bal Harbour Shops (13.5%) and Simon Property Group (25%) to
develop the retail component of BCC. Swire Props holds 61.5% of BCC retail.
20
Trading Portfolio
HK Trading Portfolio
AREZZO
WHITESANDS
112 units out of 127 units sold since launch
$ 29,555 psf (avg price)
1 unit out of 28 units sold since launch
$ 25,754 psf (avg price)
ALASSIO
(GFA: 195,533 sf) to be completed in 2016 and available for
handover in 2017.
AZURA
ARGENTA
MOUNT PARKER RESIDENCES
All Sold (53 units sold)
All Sold (126 units sold)
All Sold (30 units sold)
1 unit left (91 units sold)
$22,197 psf (avg price)
$31,309 psf (avg price)
DUNBAR PLACE
22
(1) At 8th March 2016.
(2) Average selling price is based on saleable area (excluding carpark).
$33,466
psf (avg price)
$24,833 psf (avg price)
Brickell City Centre, Miami - Trading
Future
Condominium Tower
523,000 sf
Rise
EAST,
Miami
Reach
Future
Development
1,444,000 sf
Artist Impression
Artist Impression
Artist Impression
Condominiums – Reach and Rise
Reach
335 out of 390 units sold since launch
mid- US$ 600s psf (avg price)
(1)
(2)
Rise
Artist Impression
160 out of 390 units sold since launch
high- US$ 600s psf (avg price)
(1)
Reach
23
Rise
(1) At 8th March 2016.
(2) Average selling price is based on saleable area.
(3) The above simplified diagram is not to scale and is for illustration purpose only.
(2)
Financing
Net Debt and Gearing
Gearing
Net Debt Reconciliation (HK$M)
Net debt at 31st Dec 2014
(34,071)
Net rental and fees receipts
9,079
Proceeds from property trading / development
5,098
Capex- PP&E and property investment
(4,174)
Development costs – property trading
(2,649)
Net investments in JVCs / Associates
(1,414)
Profit tax paid
(1,267)
Dividends paid to the Company’s shareholders
(3,920)
Other operating items
373
Net debt at 31st Dec 2015
(33,348)
Financial Ratios
2011
2012
Total Equity (HK$ M)
176,418
193,076
203,150
208,547
217,949
27,700
28,921
32,014
34,071
33,348
15.7%
15.0%
15.8%
16.3%
15.3%
12.0
7.9
6.4
7.6
7.8
9.2
6.0
5.1
5.6
5.9
Gearing
Underlying Interest Cover
Underlying Cash Interest Cover
25
37,734
(403)
Net interest paid
Net Debt (HK$ M)
36,945
2013
2014
2015
Net Debt
HK$
33,348 M
Gearing
15.3 %
Maturity Profile & Liquidity
Maturity Profile of Available Committed Facilities (at 31st Dec 2015)
Total 45,106
Drawn 37,299
7,423
6,673
11,363
10,359
6,487
5,987
4,908
2,155
5,686
4,886
2,465
465
4,340
4,340
94
94
600
600
HK$M
1,740
1,740
Dec 2014 Dec 2015
Cash
2,874
4,386
Undrawn - committed
6,748
7,807
9,622
12,193
1,665
1,553
11,287
13,746
HK$’M
Undrawn - uncommitted
Currency
Profile
 Major financing activities in 2015:
 Arranged three 5-yr term and revolving loan facilities aggregating
HK$3,500M
 Issued medium-term notes of HK$1,740M
 An increase of US$250M in a revolving loan facility
 Arranged a revolving loan facility of SGD100M
 Subsequent to 31st Dec 2015:
 Issued medium-term notes of US$500M
26
Fixed : Floating
61% : 39%
Credit Rating
Fitch “A”
Moody’s “(P)A2”
S&P “A-”
Available Committed Facilities
HK$
45,106 M
Cash & Undrawn
Committed Facilities
HK$
12,193 M
Capital Commitments
Profile of Capital Commitments – at 31st Dec 2015
HK$’M
Expenditure
Forecast Year of Expenditure
Commitments*
2015
2016
2017
2018
2019 & later
At 31st Dec 2015
Hong Kong
2,731
4,436
3,477
2,530
5,586
16,029
Mainland China
1,497
1,416
633
461
10
2,520
U.S.A. and elsewhere
2,372
828
162
156
103
1,249
Total
6,600
6,680
4,272
3,147
5,699
19,798
* The capital commitments represent the Group’s capital commitments of HK$16,550 million plus the Group’s share of the capital commitments of
joint venture companies of HK$3,248 million. The Group is committed to funding HK$1,190 million of the capital commitments of joint venture
companies.
27
Prospects
Prospects
Hong Kong Office
 High occupancy and limited supply will put upward
pressure on rents in Central, despite a slowdown in
demand for office space by Mainland Chinese entities.
 High occupancy is expected to result in rents in Taikoo
Place and Cityplaza being reasonably resilient despite
increased supply in Kowloon East and other districts.
Mainland China Office
 In Guangzhou, office rents are expected to be stable in
2016 despite a substantial supply of new office space.
Hong Kong Retail
 Demand for retail space in Hong Kong is expected generally
to weaken in 2016.
 But there is growth in demand for quality space from
tenants engaged in successful businesses.
Mainland China Retail
 Overall retail sales are expected to grow modestly in
Guangzhou and Beijing and steadily in Chengdu.
 In Beijing, office rents are expected to weaken in 2016 as
substantial amounts of new office space become available
and demand falls.
Property Trading
 Buyers of property have become more cautious in the
light of expected interest rate increases and general
economic uncertainties.
 Trading profits are expected to be recognised in 2016 from
the sales of the remaining units at the Hong Kong
developments and from the sales of units at the Reach
and Rise developments in Miami.
29
Hotels
 Trading conditions for our hotels in Hong Kong and
Mainland China are expected to be challenging in 2016.
Sustainable Development
“Long-term value creation depends on the sustainable development of our business
and the communities in which we operate. We wish to excel as corporate citizens.”
Environment
3% energy intensity (2015)
52 -> 64 million kWh / yr
escalated energy reduction target (by 2020)
GFA
28 BEAM/+ & 6 LEED certified projects
Health &
Safety
2.6% lost time injury rate (2015)
OHSAS 18001 Health & Safety Mgmt
Communities
Annual Energy
Consumption
1,300 + community ambassadors (2015)
5,500 hours of service (2015)
Blueprint project
Community Caring Fund established
Employees
Staff Engagement & Communication
~ 4,900 employees
courses for our
> 1,000 development
employees (2015)
Working with
Others
Green Purchasing
Free Energy Audits for tenants
Sustainability Memoranda with tenants
(TaiKoo Hui, Guangzhou)
30
Urban Institute Global
Awards (2015)
(2015)
(2015)
Swire Properties in Five Years
Expected Attributable GFA by Segment
28%
GFA (‘000 sq ft)
Expected Attri. Trading GFA Sales
to Complete
Expected Attributable GFA by Region
28%
GFA (‘000 sq ft)
27,152
HK Residential
27,152
195,533 sq ft
(5.7%)
(3.6%)
21,270
(3.3%)
(9.0%)
N/A
+ 36%
+ 20%
US Residential
1,134,000 sq ft
21,270
523,000 sq ft
+ 25%
(BCC Phase II)
Total Exp. Attri. GFA (Trading)
to Complete
(30.0%)
1.9 M sq ft
+ 23%
(57.9%)
(65.7%)
(57.1%)
+ 12%
Total Exp. Attri. GFA
(Investment Props)
to Complete
5.9 M sq ft
2015
31
2021F &
onwards
N/A
+ 13%
(33.1%)
(55.1%)
780
(BCC Phase I)
(32.3%)
(26.6%)
197
N/A
(9.8%)
(1.2%)
(9.6%)
Exp. Units
2015
2021F &
onwards
Appendix
Property Portfolio
Investment Props / Hotels
Attributable GFA (M sq ft)(1)
Office
Retail
Hotels(2)
Resid./Serviced
apartment
UnderPlanning
Total
10.2
2.5
0.7
0.6
-
14.0
2.0
3.9
1.0
0.1
-
7.0
-
-
0.3
-
-
0.3
12.2
6.4
2.0
0.7
-
21.3
27.2
M sq ft
Attributable Investment Props by
Region (GFA)
Completed
10%
Hong Kong
Mainland China
U.S.A.
Sub-Total (A)
Under Development or Held for Future Development
Hong Kong
1.7
-
-
-
0.1
1.8
Mainland China
0.9
0.5
0.2
0.1
-
1.7
U.S.A. and elsewhere
0.3
0.3
0.2
0.2
1.4
2.4
Sub-Total (B)
2.9
0.8
0.4
0.3
1.5
5.9
15.1
7.2
2.4
1.0
1.5
27.2
TOTAL = (A) + (B)
Trading Props
Attributable GFA
(M sq ft)
Completed Prop Held
for Sale
Under Development /
Held for Development
Total
Hong Kong
0.1
0.2
0.3
Mainland China
0.3
-
0.3
-
3.0
3.0
0.4
3.2
3.6
U.S.A.
Total
33
(1)
(2)
Excludes GFA of car parks.
Hotels are accounted for under property, plant and equipment in the financial statements.
32%
58%
Attri. Investment
Portfolio
Attri. Trading
Portfolio
27.2 M sq ft
3.6 M sq ft
Total Attri. Property Portfolio
30.8 M sq ft
Completed Investment Portfolio
Expected Attributable GFA of Completed Investment Portfolio (incl. Hotels) (1)(2)(3)(4)
GFA
(‘000 sq ft)
21,316
21,270
22,507
23,440
24,651
24,728
Taikoo Li Sanlitun (20%)
Sino-Ocean Taikoo Li
Chengdu (50%)
Berkshire House (50%)
Taikoo Place Apts
34
(1)
(2)
(3)
(4)
Sale of UK hotels
The Temple House
(50%)
Kowloon Bay (NKIL 6312)
Cityplaza 3 Exchange
HKRI Taikoo Hui,
Shanghai (50%) –
HKRI Taikoo Hui,
Shanghai (50%) –
Retail & Office
Brickell City Centre (Ph I)
Office & Hotels
27,152
TKP Redevelopment
(Ph II) (3)
TKP Redevelopment
(Ph II - CH) starts (3)
TKP Redevelopment
(Ph II - WH) starts (3)
24,728
TKP Redevelopment
(Ph I)
8-10 Wong Chuk
Hang Road (50%)
Tung Chung
(TCTL 11) (20%)
Hotels are accounted for under property, plant and equipment in the financial statements.
Excludes GFA of property trading components and car parks but includes GFA of the hotel portion of these projects.
Redevelopment under planning, subject to further review.
Development subject to further review.
One Brickell City
Centre (Ph II)(4)
Revenue Analysis
2015 Revenue Breakdown by Segment
2015 Revenue Breakdown by Region
HK$’M
HK$’M
16,447
16,447
HK$’M
Comparison
Comparison
2014
2015
Rental
10,320
10,716
Trading
3,842
4,463
Hotels
1,089
1,127
Others
136
141
15,387
16,447
Total
HK$’M
HK
2014
2015
12,967
13,917
China
2,210
2,335
U.S.A.
23
26
187
169
15,387
16,447
U.K.& Others
Total
The turnover increased by 7% principally due to higher sales revenue from the sale of
residential apartments, higher rental income from investment properties and higher revenue
from hotel operations.
35
Revenue
7%
HK Portfolio Map
36
(1)
(2)
The simplified maps are not to scale and are for illustrative purpose only.
GFA figures are for reference only.
Taikoo Li Sanlitun, Beijing
 Gross rental income at Taikoo Li Sanlitun recorded satisfactory growth in 2015.
Project Summary (100% Basis)
 Overall occupancy at Taikoo Li Sanlitun was 94% at 31st Dec 2015.
GFA
1.47 M sq ft
 Retail sales grew by 3% in 2015 and are expected to grow modestly in Beijing in
2016. Demand for luxury goods has weakened but demand for fashion and lifestyle
brands and food and beverages is expected to remain solid.
Components
TKL Sanlitun South
TKL Sanlitun North
The Opposite House
Interest
Retail : 100%
TOH : 100%
Yr of Opening
2008 (TKL South)
2008 (TOH)
2010 (TKL North)
37
TaiKoo Hui, Guangzhou
 TaiKoo Hui is our largest investment property in Mainland China.
Project Summary (100% Basis)
 Occupancy of the shopping mall was 99% at 31st Dec 2015.
GFA
3.84 M sq ft
Components
Shopping Mall
2 Office Towers
Mandarin Oriental GZ
 Occupancy of the office towers was 100% at 31st Dec 2015.
Interest
97%
 Office rents are expected to be stable in 2016 despite a substantial supply of new
office space.
Yr of Opening
2011 / 2012 / 2013
 Retail sales increased by 16% in 2015. Retail sales are expected to grow modestly in
Guangzhou in 2016. Demand for retail space for occupation by outlets selling high
quality brands and food and beverage outlets is strong.
38
INDIGO, Beijing
 Occupancy (1) at the shopping mall was 97% at 31st Dec 2015.
Project Summary (100% Basis)
 Retail sales increased by 30% in 2015.
GFA
1.89 M sq ft
 The office tower, ONE INDIGO, was 92% leased (1) at 31st Dec 2015. Business at EAST,
Beijing improved despite increasing competition.
Components
Shopping Mall
ONE INDIGO
EAST, Beijing
Interest
50%
Yr of Opening
2011 / 2012
 Office rents in Beijing are expected to weaken in 2016 as substantial amounts of new
office space become available and demand falls.
39
(1)
Including those who have signed letters of intent.
Sino-Ocean Taikoo Li Chengdu
Artist’s Impression
Artist’s Impression
Artist’s Impression
Artist’s
Artist’s
Impression
Impression
Artist’s Impression
Artist’s Impression
Artist’s Impression
 A large-scale retail-led development comprising a street-style retail complex (2-3 storey
blocks), a boutique hotel and serviced apartment (the Temple House), and a Grade A
office tower (Pinnacle One) served by the metro.
Project Summary (100% Basis)
GFA
2.21 M sq ft
 Sino-Ocean Taikoo Li Chengdu was formally opened in Apr 2015. At 31st Dec 2015,
tenants had committed(1) to lease 88% of the space and 83% of the shops in the
development were open.
Components
Retail
Office (for trading)
The Temple House
Serviced Apartments
Interest
50%
Yr of Opening
2014 / 2015
 In 2015, the profit from the sales of approximately 52% of the presold GFA was
recognised. The sale of the remaining presold GFA and 350 car park spaces is being
cancelled as part of the consideration has not been received according to schedule.
 The Temple House (including its serviced apartments) opened in July 2015.
(1)
40
Including those who have signed letters of intent.
HKRI Taikoo Hui, Shanghai
Artist’s Impression
Artist Impression
Artist’s Impression
 A large-scale retail-led mixed-use development comprising a retail mall, two office
towers and three hotels (1), and is expected to become a landmark development in
Shanghai.
GFA
3.47 M sq ft
 Prime location with significant frontage to Nanjing West Road, one of Shanghai’s
major shopping and business thoroughfares, being adjacent to the existing Nanjing
West Road metro station (which serves three metro lines) and near the Yan’an
Expressway.
Components
Retail Mall
2 Office Towers
3 Hotels (1)
Interest
50%
 Structural works has been substantially completed. Interior decoration, mechanical
and electrical installation works in progress.
Yr of Opening
2016 onwards
 The project is expected to open in phases from 2016.
(1)
41
Project Summary (100% Basis)
Including serviced apartments.
HK Trading Portfolio
Trading Properties Sold or Being
Sold or Pre-sold
(At 8th Mar 2016)
Saleable
Area(1)
(sq ft)
(100% basis)
Total
Units
Unit
Sold
Actual
Completion
Actual
Handover
AZURA, 2A Seymour Road
-
126
126
2012
2012
- 122 (before 2015), 4 (2015)
87.5%
ARGENTA, 63 Seymour Road
-
30
30
2013
2013
- 27 (before 2015), 3 (2015)
100%
DUNBAR PLACE, 23 Dunbar Road
-
53
53
2013
2014
- 52 (2014) and 1 (2015)
50%
2,748
92
91
2013
2014
- 82 (2014) and 9 (2015)
80%
AREZZO, 33 Seymour Road
22,704
127
112
2015
2015
- 112 (2015)
100%
WHITESANDS, Lantau
62,957
28
1
2015
2015
- 1 (2015)
100%
Trading Properties under
Development
Total GFA
(sq ft)
(100% basis)
Total
Units
Unit
Sold /
Pre-sold
Expected
Completion
Expected
Handover
ALASSIO, 100 Caine Road
195,533
197
N/A
2016
2017
MOUNT PARKER RESIDENCES,
1 Sai Wan Terrace
MOUNT PARKER
RESIDENCES
42
(1)
Represents the saleable area of remaining unsold units.
Units for which Profit Recognised or
Expected to be Recognised (Year)
Development Status
-
Superstructure work in progress.
Int.
Int.
100%
Hotel Portfolio
Managed Hotels
Completed
No. of
Rooms
Interest
(100% basis)
No. of
Rooms
Owned but Non-managed Hotels
Completed
Interest
(100% basis)
HK
The Upper House
117
100%
HK
Island Shangri-La HK
565
20%
HK
EAST, Hong Kong
345
100%
HK
JW Marriott Hotel HK
602
20%
HK
Headland Hotel (1)
501
0%
HK
Conrad HK
513
20%
China
The Opposite House, Beijing
99
100%
HK
Novotel Citygate HK
440
20%
China
EAST, Beijing
369
50%
China
Mandarin Oriental, Guangzhou (2)
287
97%
China
The Temple House, Chengdu (2)
142
50%
U.S.A.
Mandarin Oriental, Miami
326
75%
Sub-Total (A)
Sub-Total (C)
1,573
Under Development
Under Development
China
Hotels at HKRI Taikoo Hui,
Shanghai (2)
213
50%
U.S.A.
EAST, Miami (2)
352
100%
Sub-Total (B)
Total = (A) + (B)
2,733
565
China
Hotel at HKRI Taikoo Hui,
Shanghai
Sub-Total (D)
2,934
Artist Impression
Expected Total Managed Rooms
2,138
East Miami
43
50%
201
Total = (C) + (D)
2,138
201
(1) Headland Hotel is owned by Airline Hotel Limited, a wholly-owned subsidiary of Cathay Pacific Airways Limited.
(2) Including serviced apartments.
Valuation of Completed Investment Properties
 Consistent value creation through continuous property investment and asset reinforcement.
2005 – 2015 Valuation of Completed Investment Properties (excl. Hotels) *
Valuation of investment
portfolio tripled in 11 years
44
218,720
213,423
* Per 2015 financial statements on accounting basis. Hotels are accounted for under property, plant and equipment in the financial statements.
2011 does not include Festival Walk which was sold in August for HK$ 18.8 bn.
228,449